Analysts expect that Red Hat Inc (NYSE:RHT) will post $827.44 million in sales for the current quarter, according to Zacks. Twelve analysts have provided estimates for Red Hat’s earnings, with the highest sales estimate coming in at $832.45 million and the lowest estimate coming in at $825.90 million. Red Hat posted sales of $723.36 million during the same quarter last year, which would indicate a positive year over year growth rate of 14.4%. The business is scheduled to report its next quarterly earnings report on Monday, September 24th.
According to Zacks, analysts expect that Red Hat will report full year sales of $3.39 billion for the current year, with estimates ranging from $3.38 billion to $3.41 billion. For the next financial year, analysts forecast that the business will report sales of $3.90 billion per share, with estimates ranging from $3.79 billion to $3.97 billion. Zacks’ sales calculations are an average based on a survey of research firms that cover Red Hat.
Red Hat (NYSE:RHT) last released its earnings results on Thursday, June 21st. The open-source software company reported $0.72 EPS for the quarter, topping analysts’ consensus estimates of $0.69 by $0.03. Red Hat had a net margin of 9.77% and a return on equity of 30.40%. The firm had revenue of $813.53 million during the quarter, compared to analyst estimates of $807.48 million. During the same quarter in the previous year, the business earned $0.56 EPS. The business’s quarterly revenue was up 20.2% compared to the same quarter last year.
RHT has been the topic of a number of recent analyst reports. BMO Capital Markets reduced their price target on shares of Red Hat from $192.00 to $177.00 and set a “market perform” rating on the stock in a research report on Wednesday, June 27th. ValuEngine raised shares of Red Hat from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, May 2nd. Zacks Investment Research cut shares of Red Hat from a “buy” rating to a “hold” rating in a research report on Wednesday, June 27th. Raymond James cut shares of Red Hat from an “outperform” rating to a “market perform” rating and set a $84.00 price objective on the stock. in a research report on Tuesday, June 19th. Finally, Royal Bank of Canada boosted their price objective on shares of Red Hat to $180.00 and gave the company a “positive” rating in a research report on Wednesday, May 9th. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating and twenty have given a buy rating to the company. The stock currently has an average rating of “Buy” and an average target price of $157.83.
RHT traded down $0.64 during trading on Wednesday, reaching $140.15. 988,852 shares of the company’s stock were exchanged, compared to its average volume of 1,939,745. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.28 and a current ratio of 1.28. Red Hat has a fifty-two week low of $100.15 and a fifty-two week high of $177.70. The firm has a market capitalization of $25.68 billion, a PE ratio of 60.93, a P/E/G ratio of 3.53 and a beta of 1.07.
Red Hat announced that its Board of Directors has approved a stock repurchase program on Thursday, June 21st that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the open-source software company to repurchase up to 4% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.
In other Red Hat news, CEO James M. Whitehurst sold 44,472 shares of the business’s stock in a transaction dated Tuesday, August 7th. The shares were sold at an average price of $142.56, for a total transaction of $6,339,928.32. Following the sale, the chief executive officer now directly owns 445,557 shares of the company’s stock, valued at approximately $63,518,605.92. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Delisa Alexander sold 2,305 shares of the business’s stock in a transaction dated Tuesday, July 17th. The stock was sold at an average price of $145.00, for a total transaction of $334,225.00. Following the sale, the executive vice president now directly owns 36,309 shares in the company, valued at $5,264,805. The disclosure for this sale can be found here. Insiders have sold a total of 56,926 shares of company stock worth $8,145,758 over the last three months. Insiders own 0.58% of the company’s stock.
Large investors have recently modified their holdings of the business. Mount Yale Investment Advisors LLC acquired a new position in shares of Red Hat during the 1st quarter worth about $103,000. Migdal Insurance & Financial Holdings Ltd. increased its stake in shares of Red Hat by 16,350.0% during the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 987 shares of the open-source software company’s stock worth $133,000 after purchasing an additional 981 shares during the last quarter. Quad Cities Investment Group LLC acquired a new position in shares of Red Hat during the 2nd quarter worth about $134,000. Summit Trail Advisors LLC increased its stake in shares of Red Hat by 17,117.4% during the 1st quarter. Summit Trail Advisors LLC now owns 137,395 shares of the open-source software company’s stock worth $137,000 after purchasing an additional 136,597 shares during the last quarter. Finally, Financial Architects Inc increased its stake in shares of Red Hat by 95.2% during the 2nd quarter. Financial Architects Inc now owns 1,025 shares of the open-source software company’s stock worth $137,000 after purchasing an additional 500 shares during the last quarter. 95.63% of the stock is currently owned by hedge funds and other institutional investors.
About Red Hat
Red Hat, Inc provides open source software solutions to develop and offer operating system, virtualization, management, middleware, cloud, mobile, and storage technologies to various enterprises worldwide. It offers infrastructure-related solutions, such as Red Hat Enterprise Linux, an operating system platform that runs on hardware for use in hybrid cloud environments; Red Hat Satellite, a system management offering that helps to deploy, scale, and manage in hybrid cloud environments; and Red Hat Enterprise Virtualization, a software solution that allows customers to utilize and manage a common hardware infrastructure to run multiple operating systems and applications.
Featured Story: What are the Different Types of Leveraged Buyouts?
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Red Hat Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Red Hat and related companies with MarketBeat.com's FREE daily email newsletter.